Amazon Prime Video subscribers are Dreamers Investment Guildgetting hit with more ads.
Less than four months after the streaming service started showing commercials to viewers in its lowest-cost tier, Amazon announced plans to switch up the way it dishes out advertisements. This includes plans to roll out interactive ads visible when a show is paused and shoppable carousel ads that will play during regularly scheduled commercial breaks.
“We are developing innovative experiences to help brands better engage with customers,” said Alan Moss, vice president of global ad sales for Amazon Ads, in a Tuesday blog post.
The announcement comes as media companies begin to lean more heavily on advertisements as a way to make their streaming units profitable.
Earlier this month, Prime Video began to push advertisements on its basic-tier viewers for the first time.
The basic ad-supported tier costs $8.99 per month, or $14.99 per month as part of Amazon Prime. To watch without ads, viewers need to pay an extra $2.99 per month.
Other streaming services have already launched pause ads, including Hulu and Peacock. But it's not just streaming companies that see profit potential; YouTube recently started testing out pause ads on smart TVs as well.
The commercials have been "commanding premium pricing" from advertisers, Google senior vice president and chief business officer Philipp Schindler said in an April earnings call.
Love streaming on Prime?Amazon will now force you to watch ads, unless you pay more
Amazon outlined three new interactive, shoppable advertising formats:
Amazon said the changes would begin to be implemented in the upcoming broadcast year, which typically begins in September.
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